If a merger creates a firm with 65% of the sales in the market
A)the merger will be reviewed by the Competition Bureau.
B)the merger is unlikely to be reviewed.
C)the merger is certain to be prevented by the Competition Bureau.
D)the merger will be reviewed by the Prime Minister's Office.

Question

Quizplus · Accepted Answer

A merger that creates a firm with 65% of sales in the market is likely to trigger a review by the Competition Bureau. This is because such a high market share could potentially lead to anti-competitive behavior, such as the ability to raise prices without fear of losing customers to competitors. The Competition Bureau is responsible for investigating and preventing such behavior in Canada's markets.

If a Merger Creates a Firm with 65% of the Sales